By Lisa Forman Johnson
In many organizations, Recruiters pay for themselves ten-fold each year. Unfortunately, Talent Acquisition pros tend to lose sight of this fact because they’re so busy filling requisitions. As a result, Recruitment is viewed as a support function and not the business driving function it can be in an organization.
What would happen if Recruitment started communicating how they drive business revenue? Would the CFO really ignore the fact that contingent staffing spend was reduced or that lowered voluntary attrition increased productivity? What if TA could calculate the direct revenue impact that new employees contributed over tenured employees? Would the CFO listen then?
The answer is… of course the CFO would listen and so would the entire executive leadership team! The recruitment function needs to start thinking more strategically and communicate business impacting results. Pushing out time to fill reports no longer satisfies the business… it’s time to raise the bar!
Let’s uncover a few ways to help make this happen:
- Invest time regularly to step away from the daily rush of filling requisitions and holistically look at how Recruitment can make a larger impact
- Use workforce analytics to solve business challenges
- Track reductions in contingent spend
- Knowing cost per hire, calculate how many requisitions need to be filled to cover a Recruiter’s salary
- Line chart voluntary attrition with revenue
- Recognize the dollar impact of meeting the recruitment obligations to a RFP or new business
- Understand revenue per employee: total revenue divided by the number of employees
- Define the increase in revenue produced by new employees versus tenured employees (tweet @fromlisasdesk for details on how to calculate)
There are so many ways that TA can positively impact the organization and it all boils down to: communication! Without effectively communicating how recruitment can impact a business’ success in dollars & cents- we fail as a function.
Challenge yourself to do one thing different this month that drives revenue and communicate it to the business. Make it happen!
Lisa Forman Johnson is the Director of Global Recruitment for the USO, www.uso.org. As the recruitment leader, Lisa is responsible for the talent acquisition strategy, employer branding and social media efforts needed to attract and retain talent that embrace this mission and embody the USO values. Connect with her on Twitter or LinkedIn